High enrollment supports operations
Naomi Parikh
Issue date: 8/14/09 Section: News
Drexel University continues to hire faculty and has a projected enrollment increase of two percent for fall 2009, according to an Academics Affairs Metrics report compiled by Provost Mark Greenberg.
"We continue to hire even as many schools are forced to cease new hiring or even retrench their faculties," Greenberg stated in the report. "We are taking strategic advantage of this market favorable to institutions and have hired an exceptional group of faculty for this year."
Jan Biros, vice provost for pudget, planning and administration, said most of Drexel's funds come from student tuition, so increased enrollment keeps the University's budget stable.
"We are a tuition-driven school, which means that our operating funds are primarily from tuition dollars, so if our enrollments are strong then our budget is strong," Biros said. "While our endowment has been affected by the economy, it has not had an impact on our operations since funds from the endowment make up no more than three percent of our annual budget."
Thomas Elzey, senior vice president for finance said the endowment provides three to four percent of Drexel's spending money, while tuition provides 49 percent. Elzey also said the University has "no specific plans" to increase tuition due to the economy, but uses other sources to fund the ongoing construction.
"Drexel uses three primary sources of funds to pay for construction-gifts, financing and internal University resources," Elzey, treasurer and chief financial officer, said.
Elzey stated that although Drexel's endowment has dropped because of the economy, the University was not affected as much as other "endowment-dependent" schools.
"Drexel has not used the endowment to support major capital improvements," Elzey said. "Unlike other institutions, Drexel does not rely as heavily on gifts to support campus and program growth. Because of this model, Drexel is able to maintain its strong financial footing even during the economic recession."
"We continue to hire even as many schools are forced to cease new hiring or even retrench their faculties," Greenberg stated in the report. "We are taking strategic advantage of this market favorable to institutions and have hired an exceptional group of faculty for this year."
Jan Biros, vice provost for pudget, planning and administration, said most of Drexel's funds come from student tuition, so increased enrollment keeps the University's budget stable.
"We are a tuition-driven school, which means that our operating funds are primarily from tuition dollars, so if our enrollments are strong then our budget is strong," Biros said. "While our endowment has been affected by the economy, it has not had an impact on our operations since funds from the endowment make up no more than three percent of our annual budget."
Thomas Elzey, senior vice president for finance said the endowment provides three to four percent of Drexel's spending money, while tuition provides 49 percent. Elzey also said the University has "no specific plans" to increase tuition due to the economy, but uses other sources to fund the ongoing construction.
"Drexel uses three primary sources of funds to pay for construction-gifts, financing and internal University resources," Elzey, treasurer and chief financial officer, said.
Elzey stated that although Drexel's endowment has dropped because of the economy, the University was not affected as much as other "endowment-dependent" schools.
"Drexel has not used the endowment to support major capital improvements," Elzey said. "Unlike other institutions, Drexel does not rely as heavily on gifts to support campus and program growth. Because of this model, Drexel is able to maintain its strong financial footing even during the economic recession."
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